More new homes required in UK cities - CBI

Housebuilders need to do more to unlock the untapped growth potential of cities across the UK, by developing more new homes in major urban areas, the CBI Director-General will say today (Thursday).

In a speech to the Birmingham Made Me design expo, John Cridland, CBI Director-General, will outline his vision of a new approach to regeneration which focuses on business growth and breaks the cycle of dependency on the public sector.

Speaking ahead of the Chancellor's Spending Review later this month, Mr Cridland will say that regeneration must be built on strong partnerships between the public and private sectors.

He will also urge residential property developers to respond to the recent rise in demand for new homes, fuelled by various government schemes, by increasing much needed housing supply.

"The Government has helped to get the housing market moving with mortgage access initiatives, but we still need action on the supply side - we need shovels in the ground," he will say. "Failure to build will see housing in our major cities become increasingly unaffordable. Communities without young people will not flourish, and the dreams of our young people for home ownership will be dashed."

He will add: "There is huge potential for our major cities outside London to contribute far more than they do already. But without regeneration they will continue to punch below their weight."